The State of Car Insurance 2023: Car Prices Dropping, Insurance Rates Stay High

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Car insurance rates were predicted to rise at 8.4% in 2023 and higher, and 45 states are expected to see a big hike in car insurance rates, which were predicted to reach $2,061 per year, on average, for full coverage, which includes collision and comprehensive coverages.

The average cost of full coverage car insurance for 2023 is $233.60 per month, based on SmartFinancial data, with a wide range based on which state drivers live in. For instance, rates in Idaho are as low as $59.46 per month and as high as $400 a month in Florida.[1]

The good news is that car prices are prices are expected to drop by 10%. Used car prices are dropping even more. [2]

See how the rates in your state compare:

State 2023 Average Car Insurance Rate 2022 Average Car Insurance Rate
AL $137.19 $123.75
AR $124.47 $110.61
AZ $254.14 $135.27
CA $178.76 $181.03
CO $264.13 $154.31
CT $295.39 $165.05
DC $175.70 $195.14
DE $123.74 $144.63
FL $400.00 $254.58
GA $273.49 $149.01
HI $116.26 $127.50
IA $103.67 $90.55
ID $59.46 $73.76
IL $131.67 $108.77
IN $131.06 $97.61
KS $185.87 $122.32
KY $197.18 $153.54
LA $292.27 $237.75
MA $118.79 $132.06
MD $193.61 $163.57
ME $138.10 $78.04
MI $135.89 $123.48
MN $142.72 $120.15
MO $228.92 $120.91
MS $145.16 $118.20
MT $125.20 $117.62
NC $182.17 $104.01
ND $200.49 $99.82
NE $175.25 $104.90
NH $151.50 $94.86
NJ $247.24 $188.07
NM $200.52 $120.07
NV $378.87 $176.94
NY $167.42 $217.62
OH $141.95 $104.78
OK $149.84 $142.89
OR $153.26 $109.30
PA $211.48 $145.24
RI $180.93 $156.90
SC $220.09 $122.67
SD $96.09 $119.66
TN $180.06 $99.87
TX $246.71 $144.43
UT $163.33 $125.85
VA $222.22 $107.71
VT $214.98 $89.21
WA $132.36 $107.15
WI $156.24 $97.07
WV $198.21 $119.32
WY $139.83 $160.26

*All pricing is based on SmartFinancial Quotes for full coverage car insurance.[1]

**Rates change daily based on market conditions.

The average cost of full coverage car insurance for 2023 is $233.60 per month.

Car Prices Are Dropping, Insurance Remains High

Car prices were up 4.2% year-over-year in January 2023, and while they are dropping they remain 30% higher than they were before the pandemic. The prices on used cars have already already peaked and fallen now by about 10%. [2]

While lower car prices may normally lower car insurance prices, insurers are raising rates across most states because we're still paying inflationary costs. It's important to keep this in mind when choosing coverage limits, too. Accidents have never been more expensive.

Average Rates for Top Selling Cars

These are the most popular cars on the road. As you can see, there are many more Ford F-Series than GMC Sierras so there will be more accidents on record for those cars, just due to the sheer volume of them on the road. However, you can see how they rate on average and how much that amount has risen over the past year so far:

Model Units Sold Average 2023 Insurance Rates Average 2022 Insurance Rates
Ford F-Series 640K+ $166.15 $152.58
Chevy Silverado 141K+ $226.73 $147.05
Dodge Ram Pickup 468K+ $201.49 $129.31
Toyota RAV4 366K+ $188.57 $155.70
Toyota Camry 295K+ $232.42 $161.12
Honda CR-V 238K+ $198.62 $139.50
Toyota Tacoma 215K+ $193.14 $158.93
Toyota Corolla 33K+ $241.91 $178.65
GMC Sierra 241K+ $239.52 $146.41

*All pricing is based on SmartFinancial Quotes for full coverage car insurance.[1]

Switch Policies and Save on Car Insurance

Average Rates for 2022 and 2023 (each) for Top Selling EVs

Model Units Sold in 2022 Average 2023 Insurance Rates Average 2022 Insurance Rates
Tesla Model Y 191K+ $453.25 $250.80
Tesla Model 3 156K+ $303.28 $266.70
Ford Mustang Mach-E 28K+ $184.49 $252.82
Tesla Model S 23K+ $218.89 $273.09
Chevy Bolt EV/EUV 22K+ $369.46 $231.02
Tesla Model X 19K+ $244.07 $286.85
Hyundai IONIQ 5 18K+ $525.41 $190.69
Kia EV6 17K+ $224.54 $224.54

*All pricing is based on SmartFinancial Quotes for full coverage car insurance.[1]

Top 6 Cheapest Cars To Insure

Manufacturer Make Average Insurance Rate
Honda Pilot $56.63
GMC Acadia $91.12
Honda Civic $92.23
Nissan Rogue $161.02
Subaru Crosstrek $177.77
Chrysler 300 $192.65

*All pricing is based on SmartFinancial Quotes for full coverage car insurance.[1]

Factors Causing Car Insurance Rate Spikes:

Rising Car Prices

New vehicle prices hit a record high of more than $47,000 in summer of 2023, according to Edmunds. The more expensive the car is to replace or repair, the higher the car insurance premium. Cars are more expensive across the board!


Not only do cars cost more, they cost more to repair and replace due to inflationary prices on parts, labor and more. Insurance companies have raised rates so they don’t have huge losses after paying out claims.

Unsafe Driving Habits

Insurance companies reported increased speeding and reckless driving during the pandemic, which led to an increase in accidents. Couple that with distracted driving, and you can see why insurers now charge higher premiums to make up for the volume of losses caused by unsafe driving habits.

Severe Weather

Guess what covers you if your car gets caught in a flood or overturned by a hurricane or tornado? Comprehensive car insurance. Due to severe weather, insurers have paid out a small fortune in comprehensive claims over the past year. You’ll note that some of the hardest hit states had larger premium increases as a result of the expenditure.

Solutions To Saving Money on Auto Insurance:

There are a few ways you can save money on car insurance, even though prices have gone up. These are some of the most common ways people are paying lower premiums:

  • Telematics: If you allow an app to track your driving habits and the low miles you drive, you may save more money than you ever imagined.
  • Discounts: Each insurer has their own unique set of discounts. Go over each one with your agent to make sure you get all the discounts you deserve.
  • Bundling (for some): Some people are finding cheaper rates by bundling, some by buying home and auto insurance separately. Compare rates both ways to see which suits your budget.
  • Raise your credit score: If you spend a couple of months paying off debts and raising your credit score, you may save hundreds of dollars a year. People with low credit scores pay more for car insurance, except in states that do not allow your credit to be calculated into your premium cost.
  • Park in a locked and gated garage: If you have street parking, you’re paying more for car insurance, due to the risk of theft. If you can find a more secure place to park your car, you are due a lower rate.
  • Comparison shopping: The fastest way to find out who will offer you the lowest price for car insurance is to use an insurance comparison app like SmartFinancial. This way you get all the quotes you need on the same day (rates change daily) for free.

Car Insurance FAQs

What can you do to lower car insurance premiums?

The easiest way to lower your car insurance premiums is to shop around and nab the lowest rate for the coverage you need. It’s a better option than dropping coverages like collision and comprehensive to save a few dollars. There are other things you can do to lower your premium too, like paying the full year upfront and raising your credit score and deductible.

Will car insurance rates keep going up through the year?

It remains to be seen whether or not car insurance rates will climb yet again in 2023. We will be updating this page every few months and suggest you visit us every quarter to see how rates have changed and where rates are headed.

If we fix inflation, will car insurance rates go down?

Yes, if we manage to bring inflation down (which is happening slowly), insurance rates will also go down or at least stay level. Part of the reason rates went up was also due to severe weather events that cost billions of dollars.

Everyone knows that shopping around for car insurance is the best way to start saving money. Switching doesn’t have to be complicated either. All you have to do is enter your zip code below and answer the questions as accurately as possible, and you’ll soon be in touch with the agents offering the right fit and right price based on your budget and needs. The service is free, and there’s no obligation to buy, so start saving now!


  1. SmartFinancial's internal data based on quotes for 365 days in 2022 and 60 days of 2023.
  2. When Will Car Prices Drop?. J.P. Morgan, accessed March 2023.

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